Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the year 2008, Wiggins Processing Company had the following contribution income statement: Sales $1,000,000 Variable costs Cost of goods sold $440,000 Selling and administrative

In the year 2008, Wiggins Processing Company had the following contribution income statement:

Sales $1,000,000 Variable costs Cost of goods sold $440,000 Selling and administrative 200,000 (640,000) Contribution margin 360,000 Fixed Costs Factory overhead 190,000 Selling and administrative 80,000 (270,000) Before-tax profit 90,000 Income taxes (39%) (35,100) After-tax profit

$54,900

(d) With the current cost structure, including fixed costs of $270,000, what dollar sales volume is required to provide an after-tax net income of $150,000?

Do not round until your final answer. Round your answer to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Access For Computer Accounting

Authors: Donna Kay

19th Edition

1259741109, 9781259741104

More Books

Students also viewed these Accounting questions